How skills-based hiring delivers what job candidates want in 2023

Job candidates are putting their desires front and center when searching for a new job in 2023. 

In the aftermath of the Covid-19 pandemic and the Great Resignation, keeping track of what job candidates want out of their employer and career is crucial for attracting and retaining talent.

Gone are the days when candidates would bend over backward to fill out job applications, endlessly tweak their resumes, and sit through round after round of interviews. 

Candidates want a speedy hiring process, remote work opportunities, learning and development, and fair pay. The good news? Employers who make these accommodations aren’t taking a hit. They’re building stronger organizations. 

Skills-based hiring offers significant business benefits to employers and helps them stay ahead of the competition regarding candidates’ desires. 

This guide explains what candidates have wanted, no longer want, and will want in the future from their employers, and it gives you insight into how skills-based hiring helps employers deliver on these wants.

✅Fulfill candidate desires with skills-based hiring

3 desires that have remained consistent 

Workers have consistently favored hiring practices that focus on their ability to do the job rather than where they went to school or what their resume says about their experience. 

When starting a new job, employees also want to know if their employers will invest in their learning and development so they can advance through their careers and remain at a company long-term with good job security. 

Employers who adopt skills-based hiring practices, invest in learning and development, and ensure job security have an advantage in hiring and keeping top-tier talent. 

1. Skills-based assessments 

Skills-based hiring has many benefits to the employer, but a majority of candidates actually prefer a skills-based hiring process over traditional hiring methods. 

According to TestGorilla’s State of Skills-Based Hiring 2022, 54.3% of candidates prefer skills-based hiring. 

This preference is understandable when you consider the pitfalls of traditional hiring processes, which tend to:

• Waste the candidate’s time

• Introduce bias into the process

• Not identify skills

• Not predict success

• Not promote staff development

• Not accurately reflect the role

With pre-employment skills testing, candidates are offered full transparency both in what they are being assessed for and how that assessment relates to the actual job. 

From the candidate’s perspective, their abilities are all that matter, so giving them an opportunity to prove their worth without any hassle is the ideal experience for them.

Unnecessary degree or experience requirements and endless interviews are eliminated when using skills-based assessments, improving the candidate’s experience and shortening the process for everyone. 

More than a third of candidates say a hiring process that exceeds two weeks is too long.[1] 

Skills-based assessments, however, are easy to complete and have a positive impact on hiring speeds. 

2. Learning and development opportunities 

Learning and development can look different across separate generations of the workforce. But the desire for career advancement through upskilling, reskilling, or promotion has always been present, no matter the industry. 

In skills-based organizations, learning and development is a systematic approach to improving an employee’s knowledge, skills, and attitude, which leads to better performance. 

Millennials in particular want to learn at their jobs. Research shows that nearly half of millennials would leave their jobs if they were not offered growth opportunities.[2] 

That’s because focusing on learning and development benefits the career development of your employees. If the skills of your candidates are properly identified, they’ll know what to focus on and how to grow their careers. 

But what about the business benefits? 

Skills-based organizations know how to build professional development plans for their workforce to meet their employees’ needs and build stronger, more profitable businesses. 

3. Job security 

According to a Gallup study, 53% of employees are looking for organizations that offer greater job security.[8]

Although this desire has remained unchanged since 2015, it’s important to note how the meaning of “job security” has changed since the start of the Covid-19 pandemic. 

Employees want their employers to be there for them in times of crisis. They want guarantees that their jobs will persist through times of global uncertainty, or on a more individual level, times of personal struggle. 

With 43% of Gen Z workers saying they are afraid of losing their jobs, this concern won’t be going away anytime soon. 

Skills-based hiring addresses these concerns in a simple way: If the employee has the skills needed to perform well and shows growth potential, they will be supported, retained, and developed to mutually benefit the employee and employer. 

But ensuring job security is more than just hiring talented employees and then upskilling them. It also means: 

• Involving employees in decision-making: Reverse mentoring, for example, is a great way to put your junior-level employees in leadership positions. 

• Building strong teams: A team that excels has strong leadership, maintains an efficient onboarding process, respects individual skills and strengths, and is well-connected. 

• Talent planning: Talent planning identifies skill gaps within your organization and places the right talent in these positions, developing an atmosphere of collaboration, communication, and continuous improvement. 

• Fostering innovation: Creating a safe space for innovation and fresh perspectives is key to organizational vitality and talent retention. Innovative organizations encourage outside-of-the-box ideas and diverse opinions – they don’t punish them.  

• Avoiding mis-hires: Mis-hires can threaten job security by leading to higher turnover. They also threaten productivity, which is bad for business and can damage team dynamics and morale. Skills-based hiring fills positions with the right candidates and prevents the cost of a bad hire. 

Job seekers want to work for organizations that will keep them employed and engaged. Employers want to find and retain top-tier talent for the long term. Skills-based hiring ensures that these mutual concerns are addressed and lead to benefits for both parties. 

4 desires that have gained importance

The Covid-19 pandemic, generational shifts, and rising costs have all contributed to changes in worker desires. 

Specifically, candidates want a guarantee that they will be paid fairly, hired quickly and efficiently, included in a healthy workplace, and given work flexibility. 

Let’s take a closer look at these employee desires and how a skills-based hiring process puts them front and center. 

1. Fair pay

As of 2022, job candidates’ number one desire was sufficient financial compensation. Without money on the table, a majority of candidates say they’ll walk.[9] 

In fact, a survey conducted by Employ, Inc. found that 34.4% of job seekers wanted to earn more money in their jobs.[10]

Haven’t workers always wanted a competitive salary? Yes, but with inflation still high and the cost of living rising sharply, earning more money has become the main priority for candidates. 

Skills-based hiring offers a fairer way to pay based on provable employee skills rather than job titles or education experience. This payment strategy encourages employees to consistently develop their skills and learn new ones to earn more.

 It’s called skills-based compensation and it: 

• Gives employers a competitive advantage 

• Makes an organization more attractive to candidates 

• Puts the right people in the right roles

• Improves engagement and morale 

• Makes a fairer work environment 

Fair pay doesn’t simply refer to getting paid a fair wage for the work you put in. 

It’s also a guarantee that you won’t be paid unfairly because of your race, ethnicity, gender, or sexual orientation. 

Skills-based hiring helps eliminate payment disparities, like the racial wealth gap or gender pay gap, by hiring and paying employees based on their performance, not what they look like, where they went to school, or where they worked previously. 

2. Smooth hiring process

Nearly three-quarters of candidates say that a timely, smooth hiring process would help them stay committed to an organization. 

If you want a smoother hiring process, focus on candidate experience. Candidate experience is the candidate’s perception of your organization based on their interactions throughout the hiring process. It also begins before they even apply for the job. 

The hiring experience for candidates has become increasingly important given that 68% of candidates believe the hiring process reflects how a company treats its employees.[11]

Candidates have higher expectations when it comes to: 

• Logistics: when, where, and how the hiring process will occur

• Communication: how transparent and responsive employers are about the process and their feedback

• New-hire onboarding: how efficiently an employer can get a new hire up to speed

What does this look like in practice? Candidates want the hiring process to be quick, digital, mobile-friendly, and engaging. 

With 60% of employers experiencing a longer time-to-hire and 23% of employers experiencing delays in filled positions, it’s crucial to take these employee concerns into account and create a smoother hiring process. 

Here are four examples of inefficient hiring practices that slow time-to-hire: 

1. Posting a job and waiting to schedule interviews: According to Erin Stevens, a Fortune Brands Home & Security senior talent acquisition specialist, if you’re not ready to take candidates to the next stage of the hiring process, you need to put hiring on hold. 

2. Large gaps between interviews: If you’re scheduling multiple interviews with the same candidate, make sure to keep the time between interviews as short as possible, otherwise candidates will have a negative experience, like this: 

3. Lack of organization: When recruiters and hiring managers are not on the same page about candidate information or are unable to get back in touch with favorable candidates, the process gets bogged down. Following these 10 best practices for skills-based hiring keeps your process organized and humming along. 

4. Unclear job descriptions: If your job descriptions are vague or do not accurately reflect the duties of the role you’re hiring for, you may get flooded with the wrong talent or candidates who are unqualified for the actual job, slowing your process down. 

Skills-based hiring involves using pre-employment testing, practicing structured interviews, and eliminating resume requirements to keep the process straightforward and employees onboard. 

The result? Skills-based hiring has proven to reduce total time-to-hire with 91.4% of employers reporting the change.

3. Healthy workplace

According to a Monster survey, 26% of employees looking for new jobs are doing so because their current workplace is toxic.[12] 

Most employees have at least one horror story about a toxic workplace. But what if your workplace is your home? 

According to Todd Cherches, CEO and co-founder of BigBlueGumball, a toxic work environment can also permeate the home of remote workers in addition to the chaos that hybrid work schedules can cause in employees’ lives. 

That’s why it’s so important to create healthy workplaces – in-person or digital – to meet employee needs. Organizations must be built on principles of mutual respect and support. 

But how do you know if your workplace is toxic? Here are some signs to look out for: 

• A lack of robust diversity, equity, and inclusion initiatives: Without these, unethical behavior can be tolerated, discrimination goes unchecked, and employee satisfaction plummets because of a lack of inclusion. 

• An increase in illnesses or absenteeism: The stress or displeasure associated with a toxic workplace can negatively impact physical and mental health, leading employees to miss more days than if they had a healthy workplace. 

• Poor-quality work: In a toxic workplace, employees might be meeting most of their deadlines, but the quality of work just isn’t there. Employees who feel mistreated, unappreciated, or mismanaged are less likely to deliver quality work. 

• Rigid hierarchies: If your employees do not feel free to communicate their needs or innovate because of strict boundaries of authority, your workplace can toxify. 

Focusing on employee wellbeing is a big part of creating and maintaining a healthy workplace, and employees know it. 

Since the Covid-19 pandemic, employee wellbeing has climbed the list of employee desires and is a key factor they’re looking for in 2023. 

Development and upskilling keep employees engaged, but that’s not quite the same as wellbeing. Job seekers expect their employers to: 

• Value their employees and their opinions 

• Create a diverse and inclusive company culture

• Hold people accountable for unethical behavior

• Provide mental health support 

• Create a good work-life balance 

Skills-based organizations check off each of these and we have the data to back it up. According to our report, the State of Skills Based Hiring 2022, companies that used skills-based hiring experienced:

• An increase in workplace diversity (91% of employers) 

• More employees that were happy in their roles (72.1% of employees)

• Lower turnover (91.2% of employers) 

It’s important to remember that overcoming bias is key to building healthier workplaces. 

Skills-based hiring doesn’t just pay lip service to diversity and inclusion, it’s central to locating and retaining the best candidates available by: 

• Reframing the conversation around skills instead of identity to reduce bias

• Focusing your job descriptions on attributes and skills that actually matter

• Hiring for culture add instead of culture fit 

• Using objective hiring metrics like pre-employment testing 

• Ditching bias-prone resume and education requirements 

4. Remote work and flexibility

The data is clear: Employees want remote work options. 

Before the Covid-19 pandemic, about 6% of employees worked remotely. By the end of 2021, that number tripled to 18%.[13] 

Although there has been a sharp decline in remote work offerings since November 2022, a majority of workers still want the option to work from home.

In fact, most employees actually prefer a blend of remote and in-office flexibility. A Slack survey of 9,000 knowledge workers in six countries found that 72% prefer a hybrid work model.[14]

But is remote work bad for business? The short answer is no. 

Remote work opportunities lead to several business benefits: 

According to a report from McKinsey, when employees have the opportunity to work flexibly, 87% of them take it.[18] 

Employers should give it to them. 

Skills-based organizations recognize the importance and mutual benefits of work-life balance that hybrid and remote work provides. Not only does a healthy work-life balance keep turnover low, but it’s also a talent magnet. 

Skills-based hiring practices make it easier to objectively evaluate candidates in remote locations, eliminating bias that can result from in-person interviews, references, or familiar names on a resume. 

Skills-based organizations also understand that running a business remotely can be challenging. In fact, more than 7 in 10 employers are finding it difficult to adapt to remote work.[19] 

That’s why managers and employers should follow best practices to ensure the remote aspects of the organization function properly and profitably. 

3 desires that aren’t as important anymore 

The Great Resignation, the Covid-19 pandemic, and advancements in technology have all changed what workers want from their employers (and no longer want). 

Fun in-office perks, an easy commute, and a cool office building may have been attractive to employees in the past, but not so much anymore. 

Jobs that offer remote flexibility or a hybrid schedule make the office seem like less of an entertaining second home, and more of a relic from the past that a third of workers don’t want to return to.[20] 

1. In-office perks

A lot of companies that were known for going big on office perks like beers on tap, pool tables, and gaming consoles are now cutting back. 

That’s because one of the many changes caused by the Great Resignation is that employees are no longer head-over-heels for an enticing workplace environment. 

Yes, a healthy workplace is crucial to hiring and retaining skilled workers, but that workplace doesn’t need to be in-office or anywhere outside of the employee’s home, as seen with remote work. 

Linda Morey-Burrows, principal director of London-based interior design firm MoreySmith, says that employers can no longer rely on the in-office perks they used to offer to attract and retain talent.[21]

More than anything, employees want to feel safe and comfortable, whether in-office or working from home. 

Skills-based hiring takes into account how and where employees perform the best, emphasizing the skills needed to do the job in an inclusive, respectful, and developmental environment – no matter the location. 

2. Easy commute

Remote work also removes the need for employees to weigh things like job location, commute, office size, and neighborhood – all previous ways that companies could help stand out from the competition. 

An easy commute may have seemed like a great selling point in the past, but when your digital office is a few clicks away, a commute doesn’t matter. 

3. In-person work relationships

Work has always been a place where employees form relationships, friendships, and connections that can last long after they leave the workforce. 

But do employees still value work relationships?

Yes. In fact, a Buffer study found that 21% of employees struggled the most with loneliness when switching from in-office to remote work.[22]

But work relationships don’t have to be in-person to be valuable. Skills-based organizations use remote team-building activities to strengthen relationships wherever they are. 

The result: Organizations build support systems, positive working environments, and engaged workforces, even when the employees are connected from afar. 

3 desires that are starting to show up 

Since the Covid-19 pandemic and the Great Resignation turned the traditional hiring world upside down, employees want organizations to drop the perks for more individualized and holistic priorities. 

For 2023 and beyond, the bulk of research suggests that candidates want: 

• Mandatory paid sick and family leave

• Four-day workweek

• Sustainable companies 

Let’s take a closer look. 

1. Mandatory paid medical and family leave

In the US, paid medical and family leave refers to workers leaving for a health condition, to care for a new child, to care for a loved one who is sick, or for safe leave, which covers needs that arise due to sexual or domestic abuse. 

Although there are some individual state laws that protect these rights, there are currently no federal laws in the US that provide a right to paid family or medical leave. 

Workers want that to change. 

In Cleveland, Ohio, for example, dozens of organizations are demanding paid family leave for the city’s more than 7,000 employees. As the city struggles with an employee retention problem, city officials are emphasizing how paid leave addresses high turnover rates and talent shortages.[23] 

In fact, a 2021 study found that paid family leave does not actually hurt employers. 

This is no surprise to most EU countries where paid medical and family leave is a guaranteed entitlement for workers. 

Following this EU model is useful when considering candidate desires: the more generous your benefits, the more attractive your company is. 

Skills-based organizations understand that compensation and benefits play a key role in attracting and retaining talent. By offering needs-based benefits to team members, organizations are investing in more than what a candidate can do. They are investing in the future of their workforce. 

2. Four-day workweek

A four-day workweek is increasingly in demand for employees around the world. 

In fact, a Qualtrics study found that 92% of employees would support a four-day workweek.

What about employers, are they in favor? Let’s look at the data. 

A pilot program in the UK for a four-day work week in June of 2022 found that of the 61 participating organizations, only five declined to extend the changes. 

The benefits of a four-day workweek include:

• Improved work-life balance: Employees have more time to rejuvenate and recharge 

• Higher productivity: Rested employees are more productive employees 

• Makes companies more attractive: Companies know that candidates want shorter workweeks, so they use it as a hiring strategy 

• Cuts costs and carbon footprint: Less operational activity saves on electricity and resources

• Better time management: This leads to more efficient use of time, meetings, and projects 

Skills-based organizations make the most out of a four-day workweek, or they may choose from a list of alternatives, like: 

• Flexible hours and location: Employees can choose hours for both remote and hybrid work

• Unlimited PTO: Employees can take as much time off as they want as long as their work is not affected

• 9/80 work schedule: Compressed workweek that gives employees every other Friday off

• Responsibilities are set, not hours: Employers that prioritize completed tasks over hours spent working 

• Shorter workdays: Achieve similar results to the four-day workweek without having to close for a day 

In a skills-based organization, most employees are considered to be multifaceted team members who can contribute in a variety of ways. Their exceptional work is what matters, not filling their hours. 

3. Sustainable companies 

Employees are increasingly raising their standards when it comes to choosing an employer they want to work for. 

A 2022 survey from IBM found that 67% of candidates are more willing to apply for jobs at environmentally sustainable companies, with 68% saying they would be more willing to accept the jobs if they were offered them.[24] 

Employers aren’t denying the recruitment benefits either. Research shows nearly half of executives consider sustainability efforts to be a valuable hiring tool.[25] 

It’s important to note that sustainability efforts aren’t the problem for most employers, but rather their ability to communicate and show their sustainability commitments to candidates. 

Surveys show that a significant number of workers say they need more information about their company’s climate goals.[26] 

So, what should companies do? According to Jon Chorley, the chief sustainability officer at Oracle, they should start thinking like customer experience agents when it comes to communicating their sustainability efforts to employees.[27] 

Skills-based organizations are pros when it comes to effectively communicating organizational goals, priorities, and efforts. Skills-based hiring involves effective job postings and great workplace communication to attract talent and increase job satisfaction. 

Organizations should follow these best practices to improve workplace communication around a number of issues, including sustainability.

Fulfill candidate desires with skills-based hiring 

Organizations can only thrive by respecting the desires of their talent pools. 

Traditional hiring practices ignore the needs and wants of job applicants for what they believe are cost-effective alternatives like keeping employees in the office, keeping wages low, and refusing to consider innovative employment opportunities like a four-day workweek. 

Skills-based hiring, on the other hand, represents the future of employment. 

This hiring strategy acknowledges and delivers upon the desires of your talent pool to attract skilled workers and grow your business. 

Skills-based hiring encourages employers to treat their candidates and employees as long-term collaborators whose skills and development are the cornerstones of productivity, and the ever-evolving needs of employees are taken into account. 

To reap the rewards of skills-based hiring, you have to listen to your candidates and react creatively and responsibly. 

Learn more about how mutual respect for your employees makes your organization more productive, efficient, and agile. 

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